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Brian Souter

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Sir Brian Souter
Souter in 2014
Born (1954-05-05) 5 May 1954 (age 70)
Perth, Scotland
OccupationBusinessman
Years active1980–present
TitleChairman, Stagecoach Group
SpouseBetty Souter
Children4
RelativesDame Ann Gloag (sister)
Websitebriansouter.com

Sir Brian Souter (born 5 May 1954) is a Scottish businessman. With his sister, Dame Ann Gloag, he founded the Stagecoach Group of bus and rail operators. He also founded the bus and coach operator Megabus, the train operating company South West Trains, his investments company Souter Holdings Ltd, and the Souter Charitable Trust.

Souter has been politically active in Scotland, and supported the Scottish National Party (SNP) financially. In 2000, when the Scottish Executive proposed to repeal Section 2A of the Local Government Act, which prevented local authorities from "promoting homosexuality", Souter started the Keep the Clause campaign to oppose their plans, spending £1 million of his own money to organise a private referendum across Scotland. This campaign and other controversial statements have led opponents to accuse him of homophobia.

In 2011, he was knighted for services to transport and the voluntary sector.[1] The honour was criticised by Scottish Labour Party politicians and by gay rights campaigners.

In October 2019, Souter announced the donation of 28% of the total shares in Souter Investments to charitable causes, with an estimated value of £109 million. This was described in The Scotsman as "what could be the largest charitable donation by a Scot since ... Andrew Carnegie". This came after Souter's charitable trust had already spent over £98 million supporting "13,000 worthwhile causes" over 13 years.[2]

According to the Sunday Times Rich List in 2020, Souter and his sister Ann Gloag are worth £730 million, a decrease of £145 million from the previous year.[3]

Life and career

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Childhood and education

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Souter was born in the Scottish city of Perth. His father was a bus driver and as a child Brian often travelled on bus routes with his father.[4] At school he developed an interest in economics and accounts, about which he later said, "Changing my timetable from maths to include economics and accounts was one of the best things I've ever done."[5]

On leaving school, he studied at the Dundee Institute of Technology (which became Abertay University in 1994) to become a commerce teacher.[6] On completion he studied at Strathclyde University in Glasgow, where he graduated with a CA Diploma in Accountancy and Economics. Following his graduation, Souter became a Chartered Accountant at Arthur Andersen & Co.[citation needed]

Stagecoach

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Stagecoach Manchester bus

Using his father's redundancy money, with his sister Ann Gloag and his brother-in-law Robin Gloag he established the Stagecoach Group in 1980, running buses from Dundee to London.[7] Following the deregulation of bus services in Great Britain, expansion continued, and in the late 1980s Stagecoach acquired National Bus Company subsidiaries in Cumberland and Hampshire, and the East Midlands, Ribble, Southdown and United Counties companies. Stagecoach also bought bus operations in Scotland, Newcastle and London, with Manchester being added a few years later.[8] In 1993, Stagecoach was valued at £134 million and was floated on the London Stock Exchange to access capital for new opportunities for buses and trains overseas.

By the mid-1990s, Stagecoach developed its interests in Australia and New Zealand. The company further expanded with the purchase of Citybus, an operator of buses and ferries in Hong Kong, and Coach USA.[9]

Stagecoach then bought a number of the new small bus companies and ran free or low-fare buses to put local rivals out of business.[7] In Darlington, Stagecoach subsidiary Busways offered bounties to recruit drivers from the existing bus service and offered free buses to deter the rival preferred bidder from taking over that service. This practice was deemed as "predatory, deplorable and against the public interest" according to the Monopolies and Mergers Commission.[10][11]

In 2009, Souter received a £1.6 million bonus. Stating "it was felt that in the present economic climate it would not be right for any individual to pocket a bonus package of £1.6million", he donated £900,000 to his own charity, the Souter Charitable Trust, which assists humanitarian projects in the UK and overseas. Most of the remainder was given to the staff pension fund.[12][13]

In August 2012, it was announced that Souter would become chairman of Stagecoach Group on 1 May 2013, finance director Martin Griffiths replacing Souter as CEO.[14] It was announced in December 2019 that Souter would step down from his role as chairman at the end of the year, but remain on the board as a non-executive director.[15]

Rail operations

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South West Trains Class 444

Shortly after Souter floated Stagecoach on the London Stock Exchange, he turned his attention to British railways. Initial experiments consisted of a Scotland to London service branded Stagecoach Rail with carriages attached to the Caledonian Sleeper. During the privatisation of British Rail, Stagecoach bid successfully to operate the South West Trains franchise from 1996 followed by the Island Line Trains later the same year. Stagecoach successfully bid to retain both when retendered in 2001 and 2006, before they passed to South Western Railway in 2017.[16]

In 1998, Stagecoach purchased a 49% shareholding in Virgin Rail Group that operated the CrossCountry and West Coast franchises.[17] In 2007, Stagecoach commenced operating the East Midlands Trains franchise.[18] From April 2015 until June 2018, Virgin Trains East Coast, in which Stagecoach held a 90% share, operated the InterCity East Coast franchise.[19]

Megabus

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In 2003, Souter added the bus and coach operator Megabus to the group.[20] With its slogan "Low Cost Inter City Travel Serving Europe", it offered discounted travel across the UK and Europe. In 2012 it operated in 31 cities in the UK with a turnover in excess of £2 billion, with annual profits of over £250 million.[21]

In April 2013 Souter announced a new Megabus overnight sleeper service from Scotland to London. The sleeper coaches cost £5 million to build, and have 53 leather seats which can be converted into 42 bunk beds. Passengers receive a onesie for sleeping in during the trip.[22] This service ended in May 2017, due to it being consistently loss-making, and the coaches are now only used on daytime services.[23]

Souter Investments

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Souter has more than 200 private investments, which are managed by his company, Souter Investments. It makes investments across a broad range of asset classes, with a primary focus on private equity and a portfolio of more than 25 direct unquoted investments. The total portfolio, excluding Stagecoach, has increased in value by 9% per annum over 12 years.

Highland Global Transport

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PolskiBus Van Hool Astromega TD927

Souter and his sister Ann Gloag formed Highland Global Transport in 2012. It owns a portfolio of transport related investments valued at more than £600M[24] including:

InMotion Group

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ManaBus Kiwi Bus Builders bodied Volvo B11R

Highland Global Transport has purchased and established a number of subsidiaries in New Zealand. In August 2015, these were brought together under the one umbrella as the InMotion Group with 340 buses and coaches and 17 ferries.[31][32][33]

ManaBus and Naked Bus ceased operation on 15 July 2018, with the bus fleets being sold to Ritchies Transport.[34] Reesby Buses was also sold to Ritchies in February 2019.[35] Mana Coach Services and Howick & Eastern Buses were sold to Transdev Australasia in October and November 2019 respectively.[36][37][38] This leaves Fullers Group (Fullers360) as Souter's only subsidiary in New Zealand as of November 2019.[39]

Institute of Chartered Accountants of Scotland

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In April 2015, Souter was officially appointed vice president of the Institute of Chartered Accountants of Scotland, alongside newly appointed president, Jim Pettigrew.[40] Souter, who qualified as a Chartered Accountant in 1984, was the sole nominee for the vice-president role. In May 2017 the organisation appointed him as its president.[41]

Political activity

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Section 28

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Section 28 protester with a Stagecoach Manchester bus in July 2000

In 2000, the Scottish Executive proposed the abolition of Section 28 laws, which forbade local authorities from "intentionally promoting homosexuality". Souter was a prominent leader of the Keep the Clause campaign, which sought to prevent its abolition. In Scotland, where Section 28 was known as clause 2A, Souter spent £1 million on the first privately funded postal referendum across Scotland to gauge public opinion. A spokesman for Souter stated "He is not in this for personal glory. He is fighting this battle because he is a father and committed Christian."[42]

3,970,712 ballot papers were posted out and 31.8% valid votes were returned, a turnout rate lower than any Scottish national election. 86.8% were in favour of keeping Clause 28, 13.2% in favour of repeal.[42]

Souter pointed out that the number of people who voted to keep the clause exceeded the number of votes cast for any single political party in Scotland at any election over the preceding ten years,[citation needed] although Scottish voters usually choose from four main parties, not two options. The campaign was ultimately unsuccessful.

Souter's campaign group approached the Electoral Reform Society to organise the ballot through its ballot services subsidiary. The society refused the request as it believed the poll "would not be a legitimate democratic exercise to ask people to give an opinion on the repeal of Section 28 without knowing the detail of what would replace it".[43] Many groups hostile to Souter's stance had called for a public boycott of the poll, and accordingly claimed that as only a minority voted this was a defeat for Souter and his supporters. Mainstream politicians, including the Scottish National Party (which Souter has supported) largely ignored his poll and disputed whether the result was a true reflection of public opinion, with the Scottish Executive stating that the public had been fed a diet of "misinformation and lies" by Souter's campaign group.[42] The Communities Minister, Wendy Alexander MSP, criticised the poll, stating "I think what is significant about today's ballot is that two out of three voters rejected, or binned or simply ignored this glorified opinion poll."[44] Gay rights campaigner Peter Tatchell stated that "Brian Souter's support for Section 28 is the moral equivalent of the business-funded campaign to maintain racial segregation in the Deep South of the USA in the 1950s." Tatchell said that Souter's campaign was "hateful" and that it is clear that he was using his vast fortune to try to keep a cruel and "bigoted law" intact.[45]

Donations to SNP and other political parties

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Souter was a major financial supporter of the Scottish National Party (SNP). In March 2007, he donated £500,000, citing an imbalance of funding within Scottish politics.[46] He stated that it was his intention to redress an imbalance in funding: "as long as I can remember, the case for the union has been hugely financed by cash from London, while the case for independence has lacked resources. I hope my donation will help redress this imbalance".[47] Following the donation, SNP leader Alex Salmond was criticised for "pandering to homophobia" by accepting the donation.[47] Salmond thanked Souter for his support, calling him "one of the outstanding entrepreneurs of his generation".[47] One month later, in April 2007, the SNP's commitment (made at the party's 2006 conference) to re-regulate the bus network was dropped from the 2007 manifesto, although the SNP denied any direct link.[48]

In February 2011 Souter again pledged financial support for the SNP, promising to match every pound they raised with a donation of up to £500,000. Announcing his support he said Salmond and the SNP deserved a second term in office.[49][50] The SNP won a resounding victory in the election with Salmond being returned unopposed as First Minister.[51]

The BBC reported in August 2014 that Souter had donated £1 million to the campaign for Scottish independence.[52] Since Nicola Sturgeon became SNP leader in November 2014, Souter has made no further donation, but in December 2014 he gave £3,500 to the Lewes branch of the Liberal Democrats.[53][54]

In 2023, Souter aided Humza Yousaf’s government to organise a dinner between government and businesses.[55] Patrick Harvie, the Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights stated "what has to be really, really clear is that not just my party, but the Scottish Government, does not share the values of Brian Souter.".[56]

Charitable work

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In 1992 Souter and his wife set up the Souter Charitable Trust, which assists humanitarian projects in the UK and overseas, especially, but not exclusively, those with a Christian emphasis.[57] Projects include the prevention of malaria and supplying daily meals to school children in Africa. The Trust has donated more than £98m to 13,000 worthwhile causes.

Groups funded annually by the trust include Tearfund, The Message Trust, Oasis Trust and Jam International.[58]

In April 2019, Souter's company Stagecoach Southeast was announced as the sponsor of the annual Turner Prize for visual artists,[59] but the sponsorship was ended a few days later by mutual agreement after public criticism of Souter's involvement in the sponsorship.[60]

Honours and awards

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In 1997 Souter was granted an honorary degree from Strathclyde University.[61]

In 1998 he was awarded the Scottish Entrepreneur Award.[62]

In 1999 he received his second honorary degree, from Abertay University.[63]

In 2004 he was honoured with the Businessman of the Year award at the Insider Elite Awards.[64]

In 2008 he was given a Special Recognition Award for services to the bus industry.[65]

In June 2010 he was given a Special Career Service Award at the "Talent In Mobility" Awards, part of the European Mobility Exhibition held in Paris for the public transport industry.[66]

In October 2010 he was awarded the Ernst & Young UK Master Entrepreneur of the Year.[67]

In 2011 he was presented with an outstanding achievement award at the 2011 Perthshire Chamber of Commerce Business Star Awards.[68]

On 18 April 2012 he was inducted into the British Travel and Hospitality Industry Hall of Fame, the first public transport entrepreneur to receive the honour.[69]

Knighthood

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Souter was knighted in the 2011 Birthday Honours for services to transport and the voluntary sector.[70][71] This proved controversial, and was criticised by Scottish Labour MP Cathy Jamieson, who suggested a link between the knighthood and the large amounts of money he has donated to the Scottish National Party. In a public statement, Jamieson said: "The First Minister and his party must look seriously at the relationship they have developed with wealthy individuals handing them large sums of cash. The public will rightly be asking what's next on Mr Souter's shopping list?"[72] Salmond denied any wrongdoing in the matter and referred himself for investigation after calls for a probe by Scottish MP Jim Sheridan. An independent report, conducted by Lord Fraser of Carmyllie, cleared Salmond of any wrongdoing, asserting that "There appears to me to have been no breach of the ministerial code by Alex Salmond as First Minister and he should be wholly exonerated of any breach."[73]

Souter's knighthood was also criticised by some gay rights campaigners, who felt that the honour was insulting to the gay community and was effectively rewarding homophobia, given Souter's past campaigning. A petition to have the knighthood withdrawn received 5,000 signatures by July 2011.[74]

Personal life

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In 1998, Souter described English Northerners (who make up a considerable proportion of his customers) as "the beer-drinking, chip-eating, council house-dwelling, old Labour-voting masses."[75][76]

Souter lives in Perth, Scotland with his wife and four children. He is a member of the Church of the Nazarene, and attends Trinity Church of the Nazarene in Perth.[7]

References

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  1. ^ "Brian Souter knighted in Queen's birthday honours". BBC News. 11 June 2011. Retrieved 5 February 2012.
  2. ^ "Sir Brian Souter makes massive £109m donation as charities experience 'perfect storm'". The Scotsman. 22 October 2019.
  3. ^ Times, The Sunday. "Rich List 2020: profiles 101-199=, featuring Sir Paul McCartney and Joanne Rowling". The Times. ISSN 0140-0460. Retrieved 2 September 2020.
  4. ^ intervoew on Radio New Zealand, 18 November 2014
  5. ^ "Childhood". Briansouter.com. Retrieved 25 October 2013.
  6. ^ "Abertay University, Dundee - A-Z Unis & Colleges - Getting Into University". The Independent. London. 1 May 2011. Archived from the original on 27 October 2011. Retrieved 5 February 2012.
  7. ^ a b c "Brian Souter: Stagecoach's straightman". BBC News. 21 January 2000. Retrieved 5 February 2012.
  8. ^ "Bus History | Magicbus | National Bus". Brian Souter. Retrieved 5 February 2012.
  9. ^ "Stagecoach pays pounds 1.21bn for largest US bus operator". The Independent. London. 15 June 1999. Retrieved 28 October 2013.
  10. ^ Glenda Cooper (24 December 1995). "Stagecoach set record of shame ful record of shame - Home News - UK". The Independent. London. Retrieved 5 February 2012.
  11. ^ "The supply of bus services in the north-east of England". Competition Commission. Archived from the original on 4 February 2012. Retrieved 5 February 2012.
  12. ^ "Stagecoach boss gives his £1.6m bonus to staff and charity". The Daily Record. Retrieved 5 February 2012.
  13. ^ "Faith in Community Scotland". Faith in Community Scotland. Retrieved 5 February 2012.
  14. ^ "Stagecoach CEO Brian Souter to become chairman next year". Reuters.com. 22 August 2012. Archived from the original on 30 October 2013. Retrieved 22 August 2012.
  15. ^ Topham, Gwyn (11 December 2019). "Stagecoach chairman Sir Brian Souter to step down". The Guardian. ISSN 0261-3077. Retrieved 22 September 2020.
  16. ^ Stagecoach wins railway franchise BBC News 22 September 2006
  17. ^ "Virgin passengers get 'better deal'" BBC News 7 October 1998
  18. ^ Stagecoach Group welcomes East Midlands rail franchise win Stagecoach Group 22 June 2007
  19. ^ Stagecoach and Virgin win East Coast mainline rail franchise BBC News 27 November 2014
  20. ^ "Stagecoach entrepreneur Brian Souter still as driven as ever". The Courier (Dundee). Archived from the original on 4 March 2016. Retrieved 28 October 2013.
  21. ^ "Annual Report and Financial Statements 2012" (PDF). Stagecoach Group. Retrieved 28 October 2013.
  22. ^ "Stagecoach chairman Sir Brian Souter shows the way to Onesie Day". Daily Record. 29 April 2013. Retrieved 7 November 2013.
  23. ^ "Megabus is axing their luxury coach service". Independent.co.uk. 9 April 2017. Retrieved 20 November 2017.
  24. ^ About us Archived 3 September 2014 at the Wayback Machine on Highland Global Transport website, viewed 28 August 2014
  25. ^ Polskibus.com enters partnership with FlixBus Coach & Bus Week issue 1326 23 January 2018 page 9
  26. ^ PolskiBus to go green with Flixbus tie-up Buses issue 755 February 2018 page 20
  27. ^ Souter buys 75% of Finnish coach operator Herald Scotland 6 May 2014
  28. ^ Souter Investments drives into Finnish market with OnniBus.com investment Dundee Courier 7 May 2014
  29. ^ We advised Koiviston Auto Group in its acquisition of OnniBus Eversheds Sutherland 5 October 2018
  30. ^ Souter Investments sells Finland's OnniBus Buses issue 764 November 2018 page 20
  31. ^ Continued Expansion in New Zealand as Souter Holdings becomes InMotion Group Souter Holdings 19 August 2015
  32. ^ Sir Brian Souter's investment company extends presence in New Zealand The Herald 19 August 2015
  33. ^ Souter adds Reesby to expanding fleet Bay of Plenty Times 19 August 2015
  34. ^ Venuto, Damien (21 June 2018). "Fifty jobs on the line as ManaBus and Nakedbus end services". The New Zealand Herald. Retrieved 23 June 2018.
  35. ^ "InMotion Group completes sale of Reesby Rotorua". Souter Investments. 6 February 2019. Archived from the original on 21 August 2019. Retrieved 21 August 2019.
  36. ^ "Souter Investments to sell Howick and Eastern Buses and Mana Coach Services to Transdev". Souter Investments. 20 August 2019. Archived from the original on 21 August 2019. Retrieved 21 August 2019.
  37. ^ "Rail operator Transdev buys Mana Coach Services and Howick & Eastern Buses". Stuff New Zealand. 20 August 2019. Archived from the original on 20 August 2019. Retrieved 21 August 2019.
  38. ^ "Wellington's Mana Coach Services joins Transdev". Transdev Australasia. 1 October 2019. Archived from the original on 8 October 2019. Retrieved 8 October 2019.
  39. ^ "Transdev's Nz Expansion Continues; Howick And Eastern Buses Bought". Australasian Bus & Coach. 4 November 2019. Archived from the original on 4 November 2019. Retrieved 5 November 2019.
  40. ^ Huband, Graham (25 April 2015). "Jim Pettigrew and Sir Brian Souter lead major Scottish accountancy body Icas". The Courier. Archived from the original on 27 April 2015.
  41. ^ "Sir Brian Souter CA has been appointed as the new President of ICAS". Institute of Chartered Accountants of Scotland. 2 May 2017.
  42. ^ a b c "SCOTLAND | Poll supports S28 retention". BBC News. 30 May 2000. Retrieved 5 February 2012.
  43. ^ "SCOTLAND | Souter poll hits major setback". BBC News. 31 March 2000. Retrieved 5 February 2012.
  44. ^ "Keep the Clause: the legacy - News - Scotsman.com". Scotlandonsunday.scotsman.com. 6 March 2005. Archived from the original on 13 March 2005. Retrieved 5 February 2012.
  45. ^ "Think Again, Brian Souter". Peter Tatchell. 16 January 2000. Archived from the original on 9 August 2011. Retrieved 5 February 2012.
  46. ^ "UK | Scotland | Stagecoach tycoon donates to SNP". BBC News. 17 March 2007. Retrieved 5 February 2012.
  47. ^ a b c Paul Hutcheon (17 March 2007). "Souter jumps back on SNP bandwagon with £1/2 m donation". Herald. Retrieved 5 February 2012.
  48. ^ "SNP under attack after bus U-turn - Edinburgh, East & Fife - Scotsman.com". Business.scotsman.com. 23 April 2007. Retrieved 5 February 2012.
  49. ^ "£500,000 war chest for Alex Salmond - News". Scotsman.com. 12 February 2011. Retrieved 5 February 2012.
  50. ^ "Brian Souter Announces His Donation To The SNP". Briansouter.com. 13 February 2011. Retrieved 5 February 2012.
  51. ^ Black, Andrew (18 May 2011). "BBC News - SNP leader Alex Salmond re-elected as first minister". bbc.co.uk. Retrieved 5 February 2012.
  52. ^ "BBC News - Scottish independence: Sir Brian Souter donates £1m to SNP". BBC News. 13 August 2014. Retrieved 3 November 2014.
  53. ^ Paul Hutcheon (6 November 2016). "Major SNP backer Sir Brian Souter has not donated to the party under Sturgeon". Herald. Retrieved 2 September 2019.
  54. ^ "The Register of Members' Financial Interests: Session 2014-15: Norman Baker" (PDF). House of Commons. Retrieved 3 September 2019.
  55. ^ "Scotland's ruling SNP woos tycoon who shunned Nicola Sturgeon". POLITICO. 4 January 2024. Retrieved 6 January 2024.
  56. ^ McCall, Chris (6 January 2024). "Brian Souter blasted by Government minister over 'vile' Keep the Clause campaign". Daily Record. Retrieved 6 January 2024.
  57. ^ "Souter Charitable Trust: Grant Guidelines". Souter Charitable Trust. Retrieved 25 October 2013.
  58. ^ "Souter Charitable Trust: Projects". Souter Charitable Trust. Retrieved 25 October 2013.
  59. ^ "Turner Prize in gay rights row after choosing Stagecoach as sponsor". The Daily Telegraph. 1 May 2019.
  60. ^ "Stagecoach's sponsorship of Turner prize ends over LGBT rights row". The Guardian. 2 May 2019.
  61. ^ "Biographies — The Entrepreneurial Exchange". Entrepreneurial-exchange.co.uk. Retrieved 28 October 2013.
  62. ^ "Glasgow Business Club". Glasgow Business Club. 23 February 2012. Retrieved 28 October 2013.
  63. ^ "CRIEFF News Archive". Crieff.wordpress.com. 8 June 2012. Retrieved 28 October 2013.
  64. ^ Custom byline text:  Ben Griffiths (8 October 2004). "Baxter and Souter lauded for successful recipes". Herald Scotland. Retrieved 28 October 2013.
  65. ^ "Bus Companies Celebrates Award Success". TravelNorthEast.co.uk. 19 November 2008. Retrieved 7 November 2013.
  66. ^ "Transports Publics 2012 - 'Talent in mobility' awards". Transportspublics-expo.com. Archived from the original on 9 October 2010. Retrieved 5 February 2012.
  67. ^ Tim Sharp, City Editor (24 June 2010). "Stagecoach boss warns against cutting OAP free travel". Herald Scotland. Retrieved 5 February 2012. {{cite web}}: |author= has generic name (help)
  68. ^ "Star Awards 2011". Perthshire Chamber of Commerce. Retrieved 28 October 2013.
  69. ^ "Sir Brian Souter enters British Travel Industry Hall of Fame". stagecoach.com. 18 April 2012. Retrieved 19 April 2012.
  70. ^ "No. 59808". The London Gazette (Supplement). 11 June 2011. p. 2.
  71. ^ "Queen's birthday honours list: Knights | UK news". The Guardian. London. 11 June 2011. Retrieved 5 February 2012.
  72. ^ HELEN McARDLE (7 August 2011). "Row grows over honour for Sir Brian". Herald Scotland. Retrieved 5 February 2012.
  73. ^ "Alex Salmond cleared of any wrong-doing in knighthood nomination for Stagecoach tycoon Brian Souter". The Daily Record. 28 November 2011. Retrieved 5 February 2012.
  74. ^ Dalberto, Lorenzo (5 July 2011). "Gay students oppose Brian Souter's Knighthood". deadlinenews.co.uk. Retrieved 12 November 2013.
  75. ^ "A wrong turning Stagecoach boss's comments are unwise". Herald Scotland. 5 January 1998. Retrieved 5 February 2012.
  76. ^ "Suffering from foot-in-mouth". The Observer. London. 19 October 2003. Retrieved 5 February 2012.
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